Economics Weekly by Lloyds TSB

Concern about the health of the world economy has risen in recent weeks. Widespread declines in leading indicators of economic activity, particularly of PMI indices, suggest that the second half of 2010 Taylor rule suggests rates to stay low

Concern about the health of the world economy has risen in recent weeks. Widespread declines in leading indicators of economic activity, particularly of PMI indices, suggest that the second half of 2010 could be one of a severe weakening in the pace of economic recovery. At the moment, the decline in some of the leading economic data do not suggest that economic growth at a global level will go negative but the risk is certainly higher. For the advanced economies, the risk of a collapse into recession is even greater.